Veterans Seek Tax Break

Propose Increasing Income Eligibility

October 26, 2005|By PETER DOWNS; Courant Staff Writer

MIDDLEFIELD — Supporters of a petition to extend property tax exemptions to more veterans and surviving spouses made their case to increase the income eligibility limits at a public hearing Tuesday night.

About a year after an earlier proposal to increase the tax benefits for veterans won partial acceptance, a group of veterans are seeking an $18,000 increase in income eligibility so more veterans can save on their property taxes. The hearing on the proposed ordinance amendment at the Middlefield Community Center was only sparsely attended by a handful of veterans who petitioned for the change.

Supporters of extending the tax benefit petitioned town officials in late September to increase the income level for eligibility from the statutory limit of $33,000 for a couple and $27,100 for a single person to new levels of $51,000 for a couple and $45,100 for a single person. State law allows municipalities to increase income eligibility up to $25,000 over the numbers set by state statute.

The amendment allowing exemptions in property assessments up to $10,000 for eligible veterans at the higher income levels requires approval from residents at a town meeting. First Selectman Charles R. Augur said Tuesday night the board of selectmen would consider setting a date for a town meeting next week.

While backers of the ordinance got a vote of the selectmen earlier this month to hold the public hearing, they declined to set a town meeting, something the supporters had sought in the petition.

About 332 veterans are eligible for basic real property assessment exemptions provided by the state. Those $2,000 exemptions are not tied to the recipients' income.

In the current budget year, 47 veterans qualified for the higher local property assessment exemption -- up to $10,000 -- based on income eligibility, said Glenn Tewksbury, a Middlefield resident who is state veteran service officer for the Veterans of Foreign Wars. Only five veterans or surviving spouses receive the maximum property assessment exemption, Tewksbury said.

Augur believes making more veterans eligible for the real estate tax exemption will benefit everyone in town. In comparison to costs borne by the town for educating Middlefield's children, the loss in tax revenue from the tax break is significantly smaller, Augur said.

Many of the veterans are older and their children are grown and out of the school system, he said. Providing financial incentives to older residents to stay in their homes reduces the likelihood they will sell their homes and be replaced with younger families with children.

``I support their request,'' Augur said last week. ``Many of our veterans living in town are getting on in years and if we can provide support for them that will allow them to stay in their homes longer, I believe it is good policy.''

Seeking a compromise between supporters of the tax break for all veterans and those opposed to giving tax benefits to veterans with higher incomes, Selectman Peter Brown devised a plan to use a sliding income scale for eligibility. An opinion from the state, however, indicated the town can only set a single eligibility level for a property assessment exemption.